A new stimulus check proposal is making its way across the news, but this time, it is linked to DOGE, not cryptocurrencies. The Department of Government Efficiency (DOGE) has reportedly saved billions in federal spending, with talk of handing out $5,000 payments to eligible American taxpayers.
The following is a full explanation of the DOGE stimulus plan, including who may qualify and hurdles that must be overcome for these payments to become a reality.
What Is the DOGE Stimulus Plan?
The DOGE stimulus is a proposal aimed at curbing wasteful spending. The Department of Government Efficiency – a department supposed to streamline federal operations – says it has already saved $160 billion toward its $2 trillion goal.
Former President Donald Trump and his associates propose that 20 percent of those savings be given back to taxpayers directly in the form of $5,000 stimulus checks, providing much-needed relief as inflation continues to put a strain on household budgets.
Who Could Receive a DOGE Stimulus Payment?
Not every taxpayer would be eligible. DOGE stimulus checks would target net taxpayers, or those paying more into federal taxes than they get in benefits via tax credits or assistance programs.
Factors include:
- Households must have positive net payment for federal taxes.
- Payments would be given per household, not per individual.
- Social Security recipients could be eligible should income thresholds be met.
- No application needed eligibility would be determined through IRS tax filings.
Meanwhile, some states, including New York, are rolling out their own relief programs, such as $400 stimulus checks for middle-income families.
Why the DOGE Stimulus Isn’t a Done Deal
Despite growing interest, the DOGE stimulus plan is far from guaranteed. While Trump’s campaign has promoted the idea, Congressional approval would still be required to authorize and fund the payments.
Additionally, the current savings reported by DOGE $160 billion fall far short of the $2 trillion target needed to make these payments feasible. Without further cost-cutting or legislative support, the $5,000 checks remain speculative.
For context, past federal stimulus programs like the Economic Impact Payments during the pandemic required full Congressional approval and dedicated funding.
DOGE vs. Dogecoin: Clearing Up the Confusion
Some may confuse the DOGE stimulus with Dogecoin, the popular cryptocurrency. However, the two are unrelated.
In this case, DOGE stands for the Department of Government Efficiency a real-world initiative aimed at reducing government waste, not a digital currency.